Publication Type
Journal Article
Version
publishedVersion
Publication Date
4-2020
Abstract
Firms consider multiple reference points simultaneously to assess performance, yet often these referents may be inconsistent in signaling success or failure. Consequently, decision makers use two contrasting decision rules when responding to inconsistent feedback: problem-solving or self-enhancement. So far, disparate theoretical logics and mixed evidence has limited our understanding about when decision makers may shift their attention from positive to negative aspects of inconsistent feedback or vice versa, and may increase or decrease their R&D search. We examine how different types of CEO power explain why some firms may respond to inconsistent feedback, i.e. positive performance feedback and negative prospects, in distinct ways. We find that firms engaged in less R&D search as a response to inconsistent feedback when CEOs had high levels of structural, ownership or expert power. In contrast, when CEOs had high levels of prestige power, firms undertook more R&D search as a response to inconsistent feedback. Our findings provide new insights and contribute to conversations about CEO power and performance feedback within the context of the behavioral theory of the firm.
Keywords
CEO, Power, Governance, R&D, Innovation, Feedback, Analyst
Discipline
Human Resources Management | Strategic Management Policy | Technology and Innovation
Research Areas
Strategy and Organisation
Publication
Academy of Management Journal
Volume
63
Issue
2
First Page
332
Last Page
355
ISSN
0001-4273
Identifier
10.5465/amj.2017.0999
Publisher
Academy of Management
Citation
BLAGOEVA, Radina; MOM, Tom J. M.; JANSEN, Justin J. P.; and GEORGE, Gerard.
Problem-solving or self-enhancement? A power perspective on how CEOs affect R&D search in the face of inconsistent feedback. (2020). Academy of Management Journal. 63, (2), 332-355.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6200
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.5465/amj.2017.0999
Included in
Human Resources Management Commons, Strategic Management Policy Commons, Technology and Innovation Commons